Apr 06, 2020 (IAM Newswire via COMTEX) -- When the year started, no one saw this COVID-19 chaos coming so no one had the slightest clue that markets and stocks would go the way they did. Especially since 2020 started with many promising movements in the tech department! Alphabet Inc. /zigman2/quotes/205453964/composite GOOG +0.86% had a nice run until February 19th, starting the year at price $1,337, and growing to more than $1,526. And then it started going down, all the way to $1,098 as of April 3rd. Similar goes for Amazon.com, Inc. /zigman2/quotes/210331248/composite AMZN +1.72% . The stock started the year valued at around $1,848, and it pushed to $2,170, again until February 19 [th] .
Then the COVID-19 roller coaster began!
Amazon's stock finished at $1,906 as of April 3 [rd] . But this is not bad at all! Its main cloud competitor, Microsoft Corporation /zigman2/quotes/207732364/composite MSFT +1.02% 's stock started the year at a price around $158, and pushed to $188 per share during the period from February 10 [th] to February 19 [th] . And as of March 31 [st] , the price per share settled at around $158, almost the same as the opening price in January. This is also not bad considering the rest of the economy. Even more, Microsoft's plan to pay out a dividend of 51 cents per share looks doable. This decision has been confirmed by the board of directors as the dividend should be paid out in June 2020. And this will only push Microsoft's stock higher.
Microsoft cloud solutions vs other solutions
Microsoft's CEO, Satya Nadella was appointed to the job in 2014. Considering his previous position was being the executive VP of Microsoft’s cloud and enterprise group, his appointment was a clear commitment to Microsoft's strategy of launching further into the cloud. Besides the cloud, Microsoft's strength lies within cloud applications, and this is proven to be helping Microsoft's stock right now. But to be clear, this "cloud-based" strategy requested much more capital spending, $1 billion every quarter to be exact. And total capital spending for the whole company was just under $2 billion in 2010. So, this was a big decision to say the least!
By doing other software companies' online business, Microsoft managed to step in Amazon’s backyard. And if we look at Amazon's stock right now, even during this period, it is clear this was a good path to choose.
Communication and collaboration platforms
Microsoft's collaboration platform, Teams, is being heavily used during the COVID-19-induced "home office environment". The increase in use was so high, that Microsoft had to constantly work on expanding the capacity of the platform. On the other hand, everyone started talking about conference solutions from Zoom Video Communications, Inc. /zigman2/quotes/211319643/composite ZM +9.74% . Even with some security issues, Zoom has become the choice of many for doing business at home, offering a free basic plan with up to 40 minutes in group "calls". Many even say that Zoom has managed to outperform Microsoft Teams.
Tech stock seems to be recovering
No matter the current stock price, most tech stocks have found a way to recover from coronavirus. All companies that are supporting millions of people so that they can work from their homes are helping both the economy to stay alive but also themselves by keeping their core business strong. Cloud solutions and e-commerce are the essential players in this scenario. As for other tech companies that did not manage to switch to offering cloud and e-commerce solutions, they are less likely to recover at the same pace as these companies did. And they did quite a good job as some might even exit this unforeseen health crisis even better-off than they were before it all started.
This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.com Questions about this release can be send to firstname.lastname@example.org
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